Today is Labor Day. The editor here wishes all textile workers a happy Labor Day! Are you still working hard at your posts, or are you resting at home?
It is understood that many textile companies in Jiangsu and Zhejiang took advantage of the May Day Golden Week holiday. Many branches of a printing and dyeing company 3 days collective holiday!
You must know that in the past, this dyeing factory would only be open for about 1 day on May Day, and the machine would not stop. But this year, it was released for three days at once. You can imagine how bad the market is. As a barometer of the textile industry, dyeing factories can best reflect the changes in the market.
Most of the weaving mills and finishing manufacturers also stated that they plan to wait for 3-7 days, and may extend it. But I also heard that several large traders have received orders for 130 million meters of 210T polyester taffeta. Shouldn’t they be rushing? What is the current market situation?
Some specifications of polyester taffeta and pongee are selling well, but other fabrics have not seen much improvement
After visiting, many traders said that some specifications of polyester taffeta and pongee have been popular recently, while other fabrics are still stagnant. A manufacturer with more than 300 looms revealed: ” We mainly make imitation silk, but no matter from the orders, inventory, or prices, we can’t see that the market is improving.” Another industry and trade enterprise that produces imitation silk also has the same feeling.
Another trader said that he had received orders for 190T and 210T polyester taffeta. “These two varieties have dropped a bit compared to the previous inventory, but the effect is not obvious. Our prices have increased compared to before. A little bit, but compared with the Chinese New Year, it is still down. And this wave of craze is not expected to last long. This kind of low-end products can basically be made in the market, and the output is too large.”
Some traders believe that there are more hype elements in this. Polyester taffeta and pongee are not biodegradable, and there is great doubt about whether they are recognized in Europe and the United States. “There must be actual orders received in the market, but there are no Excluding the fact that some people want to use this incident to create hype, raise the price of fabrics, and take the opportunity to stock up. The price of this fabric is now about 3 cents higher than two weeks ago, but there are still many people taking the goods, and some of them are hoarding. People who sell goods need to be vigilant. If you are not careful, you may become a pick-up man.” A trader said helplessly.
The editor has a similar view to this trader. Unless a firm order is received, there is no point in stocking up. Under the epidemic situation, when future demand is unclear, it is still necessary to work hard to make our own products.
The more it falls, the less willing to buy it, and the “money shortage” becomes more and more serious!
It seems that although the hot sales of polyester taffeta and pongee have not led to an improvement in the entire fabric market, some confidence has indeed been restored this week under the stimulation of this super order. Coupled with the preferential promotions offered by polyester factories, polyester production and sales improved significantly on the 26th and 27th.
On the 27th, the FDY production and sales of some better factories reached 300%.
On the 28th, POY production and sales increased. The average production and sales of mainstream manufacturers were 140%-160%, and some better factories could reach 300%.
Then, this wave of enthusiasm only lasted for 2 days. On the 28th, polyester production and sales fell again, only 40%-60%.
So, have weaving companies stocked up? Have you taken advantage of the low level of raw materials to conduct another wave of bargain-hunting operations? A cloth boss with more than 200 looms said: “The lower the price of raw materials, the less afraid to stock up. There will be too many unexpected things in 2020. Besides, the price of crude oil has repeatedly hit the bottom. Although the price of raw materials has been low these days, There has been a slight increase, but the order demand is still unclear. Although European and American countries have said that they will resume work, we have not even received proofs for foreign trade, let alone actual orders. It is still very difficult to rely solely on domestic trade to improve. Besides, , the funds don’t allow it, so let’s be more conservative now.”
There are many weaving bosses who lost hundreds of thousands in stock preparations last year. This boss who makes imitation silk and four-way stretch fabrics said helplessly : “Now the machine is only running at 80%, because the financial pressure is too great, and money is pressed on inventory and books. But to say the least, even if you have ample funds on hand, you don’t dare to hoard it. You should just buy it and use it. After receiving the order, it is not difficult to purchase the raw materials in real time and put them into production. I am afraid that the raw materials will continue to fall. I cannot understand the market this year.”
After understanding, although the current raw material prices have reached Cloth bosses have an ideal stocking price. However, due to the impact of the epidemic, most bosses are pessimistic about the future market. If the order situation has not improved, they will not consider stocking up in large quantities. Furthermore, due to the large reduction in orders, textile companies People are generally facing “money shortage” and cash pressure.The market is very large, and buying raw materials requires cash transactions. It is not a wise move to invest most of the working capital in raw materials. Many cloth bosses think it is not a wise move.
The market is so bad that the production reduction and holiday operation after May Day will be amplified
Although judging from the current situation, the May Day holiday is already expected What happened is that, except for those manufacturers who have received actual orders and need to rush the goods, most manufacturers have said they will take a holiday on May Day, and for at least three days. Many people smiled bitterly, and now they take the holiday whenever they can.
There is a saying that rest is to be able to go further. For manufacturers with high inventory and tight funds, holidays can indeed help Give them a breather. Although there are still a lot of expenses during the holidays, they are much less than the expenses for running machines. Moreover, it is not just one or two companies taking holidays in the market now. It can be said that they have a commonality, so there is no fear of workers running away.
The cake is shrinking, causing overcapacity to explode again. Coupled with the falling raw materials, the market price of fabrics is also shrinking, and manufacturers are losing confidence. After May Day, as the off-season deepens, holidays and production reduction operations are expected to more frequently.
Whether it is a holiday or not, companies must ensure that they can “survive”. Only by surviving can they have a chance to see the dawn after the epidemic! <br
